Jenny Kane, Associated Press

In a time when confidence in traditional banks is low, following the collapse of Silicon Valley Bank, Apple has introduced Savings, a savings account that offers one of the highest annual yields anywhere at 4.15%. Plus, there are no minimum deposits or balances, no fees, and money can be withdrawn at any time without a penalty.

Apple partnered with Goldman Sachs to act as the bank, which means all accounts are FDIC insured up to $250,000, while Apple provides access to 2 billion iPhone users worldwide. Could this be the future of banking? Some analysts say yes, citing surveys that reveal consumers aren’t as enamored with big banks as they once were. But that’s a ways away.

Today, Savings is a simple way to earn more on the cash accruing from Apple purchases made with Apple Card at the very least and an alternative to a traditional savings account. It takes less than two minutes to set up a new account. It’s particularly good for anyone who has simple financial needs. You can easily track your savings on your phone and transfer funds from a linked bank account. Here’s how it works.

First, you must be an Apple Card holder. The Apple Card was introduced in 2019 and offers cash back rewards, no annual fees, no foreign transaction fees and the ability to manage your finances through the Wallet app. You can buy Apple products from Apple with no interest fees when you opt for monthly installments, and you’ll earn 3% Daily Cash back. Like with everything Apple, applying for a card is a quick and easy process that can be done right in the Wallet app.

Once you have the card, you can set up Savings. Before you start, be sure that your iPhone’s operating system is up to date, otherwise, you won’t see the Savings option. Go to “Settings,” tap “General” and then “Software Update” to see if you are up to date. If not, install the update, which is 16.4.1. You will also need to have two-factor authentication set up on your device. This is a security measure that sends a one-time code to your phone that you use to log into your account along with your password. To check, open “Settings,” tap on your name at the top of the page and go to “Password & Security.” Be sure “Two-Factor Authentication” is toggled on.

Photo supplied

Now you’re ready to set up Savings. Open the Wallet app and tap on your Apple Card. Tap the three dots in the upper right corner and select “Daily Cash.” Follow the prompts. The only piece of information you’ll have to add is your Social Security number. Agree to the terms and conditions, and voilà, you’ll have a new savings account. Your future Daily Cash will be automatically deposited into this account.

You can also add funds from a linked bank account, which you may want to do if you’re not earning much interest elsewhere, or if you’d like the idea of seeing your funds grow in the app. Open the Wallet app and scroll down to “Savings Account Current Balance” and tap the arrow. This page will show your balance. Tap the circle with the three dots at the top of the page and open “Account Details.” Find “Bank Accounts” where you will be able to add a bank account. You likely already have an account tied to your Apple Card to make your monthly payments, but you can also add a different account if you’d like to use that to transfer money to your new Apple Savings account.

This is a true savings account: You can’t spend money or make purchases in Savings directly. If you want to use your savings, you can transfer money from Savings to Apple Cash or to one of your linked bank accounts. Apple Cash is available immediately, but it will usually take up to three days for the funds to become available in your linked account.

Leslie Meredith has been writing about technology for more than a decade. As a mom of four, value, usefulness and online safety take priority. Have a question? Email Leslie at asklesliemeredith@gmail.com.

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